In 2018, world crude oil prices continue to be complicated and unpredictable. After 3 increases/decreases in oil prices in the first months of 2018, world oil prices rose sharply in August, September and on the 4th October of 2018, price of Brent crude was 86.2 USD per barrel. After that, price for Brent Crude Oil has continuously dropped, at one point the world oil price has dropped to a record of 8% in just 1 day and now the price reduction trend has not stopped. This negatively affected the domestic petroleum market and the operation of petroleum hub enterprises. Overcoming the challenges, under close direction, multifaceted support of Vietnam Oil and Gas Group, together with the efforts of the entire leadership team and staff, PVOIL has exceeded the important plan targets and has grown over the same period, including: output, profit, proportion of distribution channels… Specific results are as follows:
- Field of import and export of crude oil, Condensate: PVOIL has successfully completed the task of safe export, the efficiency of all crude oil which is delivered reached 11,628 million tons, completed 100% of the plan. PVOIL provides adequate and timely domestic crude oil and import for Dung Quat Oil Refinery; of which, domestic crude oil was 7,286 million tons, equivalent to 102% of the year plan and imported crude oil was 486 thousand tons, equivalent to 101% of the 2018 plan. For the results of implementing 5 months of joint stock company, the amount of crude oil sold was 4.656 million tons, completed 102% of the plan; supplying Dung Quat oil refinery 2.944 million tons of domestic crude oil, equivalent to 115% of the plan and 406 thousand tons of imported crude oil, equivalent to 102% of the plan.
- Petroleum business field: The world oil price has dropped sharply and continuously in the fourth quarter of 2018 and there is no sign of stopping or discounting the market at a record high and the fuel consumption of key enterprises is still difficult when base-price difference and retail price are large. Besides, on January 1, 2019, the environmental tax will increase by 1 thousand VND/liter. Because of all that, customers only buy enough essential needs to reduce inventory, causing a decline in business output of PVOIL in November and December, affect PVOIL’s completion of the 5-month production plan and the whole 2018 plan. Total petroleum business volume of PVOIL system in 2018 is estimated at 3.1 million m3, fulfilling 99% of the yearly plan; 5-month output of joint stock company is estimated at 1.212 million m3, completed 94% of the plan. Particularly, the sales volume through direct consumption channels continued to grow nearly 8% compared to the same period last year, and accounted for 25.3% of total domestic consumption, up 2.1 percentage points over the same period.
Business situation of E5 RON 92 gasoline: Because of the careful preparation, PVOIL has successfully replace RON 92 gasoline with E5 RON 92 gasoline from the beginning of 2018 in accordance with the requirements of the Government. Production is estimated to reach 554 thousand cubic meters for the whole year, completed 92% of the year plan. PVOIL has actively implemented many solutions such as: advertising and propaganda about E5 RON 92 gasoline in many forms; increase discount for units with good E5 RON 92 gasoline consumption... to boost E5 RON 92 consumption. However, E5 RON 92 gasoline consumption volume has not reached the expectation due to the general market sentiment. At the same time, the leading enterprises and distribution traders are not interested in E5 RON 92 gasoline.
- PVOIL’s consolidated revenue in 2018 was estimated at 57,100 billion VND, equal to 115% of the year plan. For the joint stock company plan, the 5-month consolidated revenue of joint stock company is estimated at 18,450, completed 121% of the plan.
- Consolidated profit before tax was estimated at 562 billion VND, completed 112% of the year plan. In which, consolidated profit in 5 months of joint stock company is estimated to reach 130 billion VND, completed 100% of the plan.
- The total value of state budget payment for the whole system is estimated at 8,252 billion VND, equal to 115% of the year plan. For a joint stock company plan, PVOIL submitting to the state budget for the whole system estimated at 2,457 billion VND, completed 137% of the plan.
- Equitization: PVOIL completed the IPO on January 25th, 2018. Oil stock code officially listed on UPCoM on March 7th, 2018. Complete transfer of money to sell shares to PVN and business development fund. Regarding the selection of strategic investors, the Government Office issued Document No 5030/VPCP-DMDN on May 30th, 2018 on the results of the first sale of shares of 3 subsidiaries of PVN. Accordingly, PVN divested from PVOIL after the company changed into a joint stock company. On that basis, PVOIL successfully organized The First General Meeting of Shareholders on July 30th, 2018 and officially moved to operate as a joint stock company from August 1st, 2018. PVOIL has issued shareholder books to Vietnam Oil and Gas Group and PVOIL’s employees; has completed the depository with Vietnam Securities Depository (VSD) and registered to list additional shares with the Hanoi Stock Exchange (HNX); has completed public company registration. At the beginning of November, 2018, PVOIL submitted to PVN for consideration and approval of the State divestment plan at PVOIL in the period of 2018 - 2020./.